Elon Musk’s SpaceX has confidentially filed for an initial public offering, setting the stage for what could become the largest stock market listing on record, Bloomberg News reported Wednesday.
A public listing at a potential valuation of more than $1.75 trillion would signal that space exploration has moved from speculative venture to a mainstream investment theme.
SpaceX’s growth has been driven by its reusable rockets and the Starlink satellite internet network.
The filing comes after SpaceX merged with Musk’s artificial intelligence startup xAI in a deal that valued the rocket company at $1 trillion and the developer of the Grok chatbot at $250 billion.
Musk, the world’s richest person, runs a sprawling business empire that spans electric vehicles at Tesla, space launch, satellite broadband, AI and social media.
“Investors could use a sum-of-the-parts analysis, but, like with Tesla, SpaceX’s valuation could very much fluctuate wildly based off how much the public believes in Musk’s vision,” said Angelo Bochanis, data and index associate at Renaissance Capital, a provider of IPO-focused research and ETFs.
“So far, investors seem to be clamoring for any sort of exposure to SpaceX.”
Largest IPO ever
The Starbase, Texas-headquartered firm could seek to raise more than $50 billion in the IPO, handily surpassing the 2019 flotation of Saudi Aramco, which remains the largest IPO on record.
A blockbuster SpaceX debut could jolt the IPO market back to life after years of subdued activity, with market participants expecting strong demand from both retail and institutional investors, some drawn by Musk’s brand and others seeking exposure to SpaceX’s fast-growing space and satellite businesses.
SpaceX is the world’s most valuable privately held company, based on the valuation implied by its merger deal with xAI. The rocket startup was last valued at about $800 billion in a secondary share sale independently.
Several other high-profile startups, including ChatGPT maker OpenAI and rival Anthropic, are also said to be weighing large IPOs, setting up a broader test of investor appetite for new listings.
Many large startups have remained private for longer, tapping deep pools of capital in private markets, but a listing by a company such as SpaceX could encourage more of them to pursue public offerings.
‘Muskonomy’
A listing would deepen analyst and investor scrutiny of “Muskonomy” — the billionaire’s sprawling business empire and intertwined fortunes — bringing renewed focus to how his companies are financed, governed and valued across markets.
“A likely dual-class share structure would let Musk tap public capital while retaining firm control, even after the substantial dilution that comes with a public offering,” said Minmo Gahng, assistant professor of finance at Cornell University.
He runs electric vehicle maker Tesla, brain-chip maker Neuralink and tunnel-digging firm The Boring Company.
Musk also folded social media platform X into xAI through a share swap last year, giving the AI startup access to the platform’s data and distribution network.
Questions about Musk’s ability to oversee multiple companies with market values exceeding $1 trillion could temper investor enthusiasm, analysts say.
“It is understandable that investors would be concerned with Musk overseeing multiple significant enterprises, especially given his polarizing public profile at times. However, SpaceX appears somewhat differentiated,” said Kat Liu, vice president at IPOX.
“The business is operationally mature, technologically ahead in several key areas, and profitable, which provides a solid fundamental underpinning.”
SpaceX generated about $8 billion in profit on $15 billion to $16 billion of revenue last year, Reuters reported in January, citing people familiar with the matter.
